May - 2016

Why it Matters is a semi-regular blog post from Sandquist Law & Construction Project Consulting that mentions or discusses certain legal developments or recent case law, news articles and how they might affect the construction, real estate and oil & gas industries, or other general topics that readers might find interesting, ranging from a landmark Supreme Court of Canada decision to a new wine or beer that the writer has tried and would recommend to try for a barbecue. In no way is any post legal advice, nor should it be relied on by any party. Posts are for information purposes only and a full investigation of the facts and law applicable to any situation you may have experienced, be related to or be curious about would be necessary to determine if any of the below information or case law could be applicable to you.

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Contractual Schedule Benchmarks are a Double-Edged Sword

A contractor and a subcontractor attach a schedule to a contract, a schedule with fancy details (probably a Gantt chart) and done on Primavera or other professional management software. The schedule lays out the critical path and every major activity and the date by which each activity needs to be performed. The Subcontractor does not meet one of those dates and the Contractor withholds money for delay damages, viewing the whole mess as a straightforward failure by the Subc

Cash Flow Crunches: How to effectively address disputes and claim issues efficiently and amicably

What do I do when I’m not getting paid on my project? Or, depending on your perspective: what do I do when my contractor or subcontractor is demanding payment and is threatening to walk? Our discussions of recent court cases illustrate the strict, theoretical legal rights and obligations of contracting parties. However, being “right” or having a “right” does not address the cost, time, frustration and inefficient use of other resources the owner, general contractor and subco

How to not bet the farm on this next project: different options for project structuring and risk man

Welcome to a new year and new challenges. In these more uncertain times with less work available for the same, or more, number of constructors, we often see people willing, and wanting, to aggressively pursue projects at the start of the new year to build up their pipeline and plan their cash flow. We thought it would be useful to send out a reminder of a few things that constructors and owners can do that could alleviate some of that “bet the farm” risk on their next proje